Few days ago, I mentioned to you that EURO has taken a major hit against USD. One of the mail reasons being FED outlook as Bullish towards USD. Another big reason is that the economy of some of the European countries. Infact some of the European governments like Swiss for example are taking some significant decisions to control the economy. So, currently from fundamental analysis perspective it looks like EUR will continue falling.
And Technical analysis supports this...When I looked at the EUR/USD charts, the currency pair has broken the 200 EMA barrier on daily charts also…So, the next question is till when and where will this currency pair keep falling? The ANSWER may be in weekly EUR/USD charts. The currency pair is soon approaching the 200 EMA level on weekly chart which is around 1.3750. Also, this level is the 50% retracement level of the rally that started in Mar-09 and was on till Dec-09. So, if you are short on EUR/USD, I am sure you are having a set of profitable trades. But I would suggest you to be watchful at 1.3750 levels... But I must mention that this was not a forex signal. This is a mere suggestion from me. You must use your own analysis as well to make the trade decisions.
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